Property Management Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Property Management Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a [Location]-based property management firm specializing in commercial and residential properties. Its goal is to provide a solution to the real estate management problems that property owners struggle with. It helps its clients with repairs and maintenance, enforcing rent due dates and strictly implementing late payment penalties, finding new tenants fit for their properties, and other property issues.

[Company Name]’s property managers are committed to dealing with all property problems, emergency repairs and tenant issues 24/7. The company puts its clients’ interests first and aims to maximize the income generated by every property by preserving its value.

Through an online dashboard and a mobile app, clients are updated in real-time on every property issue. The company’s property managers are trained to observe transparency and are keen to keep everything documented to maintain its credibility and clients’ trust.

By [year], the company envisions itself to be a leading property management firm in [location] and the surrounding areas.

Products Served

The following are the services that [Company Name] will be able to provide to its clients:

  • Property Inspections
  • Advertising and Marketing
  • Tenant Screening
  • Tenant Communication
  • Legal Compliance
  • Accounts payable and receivables
  • Contract Management

Customer Focus

[Company Name] will primarily serve the residents who live within the city. The demographics of these customers are as follows:

  • 311,445 residents
  • 36,000 housing units
  • 6,000 rental properties
  • Average income of $52,050
  • 41% married
  • 36% in Mgt./Professional occupations
  • Median age: 33 years

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a licensed real estate broker in [state] since [year]. He specialized in rentals for 7 years and in real estate sales for the next 3 years, He was a consistent top broker before he decided to start a property management firm of his own.

Joining him are his colleagues from his previous real estate firms who have a long tenure in the industry.

[Company Name] will also employ an experienced assistant to help with various administrative duties around the office. [Assistant’s name] has experience working with C-level executives and has spent significant time as an administrator.

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

  • [Company Name] will fill a specific market niche in the growing community it is entering. In addition, it received extremely positive feedback from the community saying that they explicitly want to utilize the expertise of [Company Name]’s licensed property managers.
  • The location is in an economically vibrant area where new home sales are on the rise and turnover in homes and rentals occurs often due to the upward mobility of residents.
  • The management team has a track record of success in the real estate brokerage industry
  • The local area is currently under served and has very few independent property managers offering an expert level of customer service.

Financial Highlights

[Company Name] is seeking a total funding of $210,000 of debt capital to open its firm. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Headquarters design/build: $85,000
  • Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%
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